Slide 1: FY 2015 Second Quarter Earnings Call
FY 2015 SECOND QUARTER EARNINGS CALL May 5, 2015
Slide 2: Agenda
Agenda TransDigm Overview W. Nicholas Howley Chairman and CEO Highlights, Market Review, Operating W. Nicholas Howley Performance and Outlook Chairman and CEO Financial Results Gregory Rufus Senior Executive Vice President Q&A 1
Slide 3: Forward Looking Statements
Forward Looking Statements This presentation contains forward‐looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including information regarding our guidance for future periods. These forward‐looking statements are based on management’s current expectation
Slide 4: Special Notice Regarding Pro Forma and Non-GAAP Information
Special Notice Regarding Pro Forma and Non‐GAAP Information This presentation sets forth certain pro forma financial information. This pro forma financial information gives effect to certain recently completed acquisitions. Such pro forma information is based on certain assumptions and adjustments a
Slide 5: TransDigm Overview
TransDigm Overview DISTINGUISHING CHARACTERISTICS Highly engineered aerospace components Significant aftermarket content Proprietary and sole source products High free cash flow Proprietary Pro Forma Revenues Pro Forma EBITDA Revenues (1) (Excluding Non-Aviation Segment) (1) As Defined (1) N
Slide 6: 2015 Q2 Financial Performance by Markets – Pro Forma
2015 Q2 Financial Performance by Markets – Pro Forma Highlights⁽¹⁾ Q2 Market Review – Pro Forma Revenues⁽¹⁾ Actual vs. Prior Year Q2 YTD Commercial OEM Commercial OEM: Up 1% Up 3% Commercial transport revenue up 5% YTD Commercial Aftermarket: Up 7% Up 6% Commercial Aftermarket Bookings ahead of
Slide 7: Fiscal 2015 Outlook
Fiscal 2015 Outlook FY 2014 Pro Forma Sales Mix (1) Market FY 2015 Expected Growth 31% Commercial OEM Up Mid Single-Digit % 38% Commercial Aftermarket Up Mid Single-Digit % 31% Defense Up Low to Mid-Single Digit % Assumptions Guidance Summary ($ in millions) Worldwide RPM growth ≈ 4% to 5% Low Hig
Slide 8: Second Quarter 2015 Results
Second Quarter 2015 Results ($ in millions, except per share amounts) Q2 FY15 Q2 FY14 Revenue $619.0 $590.8 4.8% Increase Gross Profit $341.6 $307.6 3 Margin Point Increase Margin % 55.2% 52.1% ● Strength of our proprietary products and productivity improvements ● Reduced non-operating acquisition r
Slide 9: Liquidity & Taxes
Liquidity & Taxes ($ in millions) Cash Liquidity 3/28/2015 FY 9/30/2014 Net Debt to Pro Net Cash Provided by Actual Forma EBITDA As Operating Activities $182.9 $541.2 3/28/2015 Defined Multiple Rate Cash $393 Capital Expenditures ($23.0) ($34.1) $420m revolver 75 L + 3.00% Free Cash Flow $159.9 $507
Slide 10: Reconciliation of GAAP to Adjusted EPS ‐ Guidance
Reconciliation of GAAP to Adjusted EPS ‐ Guidance Thirteen Week Periods Twenty-Six Week Periods Full Year Guidance Ended Ended Mid-Point March 28, March 29, March 28, March 29, September 30, 2015 2014 2015 2014 2015 Earnings per share $ 1.96 $ 1.49 $ 3.59 $ 2.93 $ 7.69 Adjustments to earnings per sh
Slide 11: Appendix ‐ Reconciliation of Net Income to EBITDA and EBITDA As Defined
Appendix ‐ Reconciliation of Net Income to EBITDA and EBITDA As Defined ($ in thousands) Thirteen Week Tw enty-Six Week Periods Ended Periods Ended March 28, March 29, March 28, March 29, 2015 2014 2015 2014 Net income $ 110,894 $ 90,355 $ 206,427 $ 176,478 Adjustments: Depreciation and amortization
Slide 12: Appendix ‐ Reconciliation of Reported EPS to Adjusted EPS
Appendix ‐ Reconciliation of Reported EPS to Adjusted EPS ($ in thousands, except per share amounts) Thirteen Week Twenty-Six Week Periods Ended Periods Ended March 28, March 29, March 28, March 29, Reported Earnings Per Share 2015 2014 2015 2014 Net income $ 110,894 $ 90,355 $ 206,427 $ 176,478 Les
Slide 13: Appendix ‐ Reconciliation of Net Cash Provided by Operating Activities to EBITDA
Appendix ‐ Reconciliation of Net Cash Provided by Operating Activities to EBITDA and EBITDA As Defined ($ in thousands) Twe nty-Six We e k Periods Ende d March 28, 2015 March 29, 2014 Net cash provided by operating activities $ 182,916 $ 220,488 Adjustments: Changes in assets and liabilities, net of